Sun Pacific Holding Corp (SNPW)

[wallstreet1231]

The bigger issue I see would be the significant dilution to current shareholders - see my example below. I think at the end of the day a reverse will be implemented and with the authorized remaining at 1b current shareholders would likely get diluted anyway. So why not use stock. Just my opinion/thoughts.



Couldn’t snpw finance it through stock?

They have a 14c filed allowing the Board to approve a reverse split - link below.

If they approved a 1,000:1 reverse that would decrease the outstanding shares from 975m to 975k.

The 14c states:

“ PLEASE NOTE THAT THE REVERSE STOCK SPLIT WILL NOT HAVE ANY EFFECT ON THE NUMBER OF AUTHORIZED SHARES.” Based on this it appears that should a reverse be approved the authorized shares post split would be 1 billion.

From a numbers perspective, based on the above, it would seem that the authorized shares would be 1b with only 975k outstanding. Wouldn’t this provide a little over 999m shares available. Couldn’t they use these shares to help with financing? It does seem that this would have a significant dilution impact to current shareholders.
Note: The assumptions are that a reverse would be approved, so far only a 14c has been filed, and that if approved the reverse would be 1,000:1. A 100:1 reverse,I believe, would leave the authorized share count at 1b with 9.75m shares outstanding - this would leave over 990m shares to help with financing.

Thoughts?

My opinions

https://www.otcmarkets.com/filing/html?id=15725687&guid=JxewkFIrHf-lB3h